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Palantir Posts 85% Q1 Growth and Raises 2026 Guidance

A rich valuation tests investor conviction.

Overview

  • Palantir reported roughly 85% year-over-year revenue growth in the first quarter with a GAAP profit margin near 53%.
  • Commercial sales more than doubled at about 104% growth, while the company still derives close to half of revenue from government clients.
  • Management lifted its full-year 2026 outlook after demand topped its own targets and analyst estimates.
  • Freedom Broker raised its price target to $230 and kept a Buy rating, pointing to surging U.S. defense demand and stronger projected cash generation.
  • Other analysts highlighted stretched pricing near 93 times forward earnings and warned that reliance on a small group of major customers could magnify any setback.